Nomura Holdings, Inc. · TSE:8604
Nomura — Q1 FY2023/24 Earnings Presentation
33 slides from Nomura's earnings presentation, Aug 4, 2023
Slide 1: Consolidated Results of Operations, First quarter, year ending March 2024
Connecting Markets East & West Consolidated Results of Operations First quarter, year ending March 2024 (US GAAP) Nomura Holdings, Inc. August 2023 © Nomura
Slide 2: Outline
Outline Presentation Financial Supplement Executive summary (p. 2) Consolidated balance sheet (p. 16) Overview of results (p. 3) Value at risk (p. 17) Business segment results (p. 4) Consolidated financial highlights (p. 18) Retail (p. 5-7) Consolidated income (p. 19) Investment Management (p. 8-9)
Slide 3: Executive summary
Executive summary Income (loss) before income taxes and net FY2023/24 1Q highlights income (loss)1 Groupwide (billions of yen) ® Net revenue: Y348.9bn (+7% QoQ); Income before income taxes: Y46.3bn (+104% QoQ); Net income1: Y23.3bn (3.2x QoQ); EPS2: Y7.40; ROE3: 2.9% Income (loss) before income taxe
Slide 4: Overview of results
Overview of results Highlights (billions of yen, excluding EPS and ROE) FY2022/23 FY2023/24 1Q 2Q 3Q 4Q 1Q QoQ YoY Net revenue 299.0 318.0 393.7 324.9 348.9 7% 17% Non-interest expenses 287.3 286.5 310.1 302.2 302.6 0.1% 5% Income (loss) before income 11.7 31.5 83.6 22.7 46.3 104% 3.9x taxes Net inc
Slide 5: Business segment results
Business segment results Net revenue and income (loss) before income taxes (billions of yen) FY2022/23 FY2023/24 1Q 2Q 3Q 4Q 1Q QoQ YoY Net revenue Retail 71.4 72.5 81.0 75.3 92.1 22% 29% Investment Management 7.6 26.2 57.0 37.8 26.5 -30% 3.5x Wholesale 199.0 205.5 189.1 178.8 190.9 7% -4% Subtotal
Slide 6: Retail
Retail Net revenue and income before income taxes Key points (billions of yen) Net revenue: Y92.1bn (+22% QoQ; +29% YoY) FY2022/23 FY23/24 QoQ YoY Income before income taxes: Y22.9bn (+133% QoQ; 4.7x YoY) 1Q 2Q 3Q 4Q 1Q We finished reorganizing our teams to better understand client needs and Net rev
Slide 7: Retail: Stronger sales across all products and services
Retail: Stronger sales across all products and services Total sales Total sales increased 21% QoQ Discretionary 5,000.0 ® Stocks: +4% QoQ investments, – Groupwide efforts started last year to promote Japanese equities led to Insurance marked growth in sales of Japanese secondary stocks products 4,00
Slide 8: Retail: KPI summary
Retail: KPI summary Net inflows of recurring revenue assets1 Recurring revenue assets and recurring revenue2 (billions of yen) ® Net outflows due to some corporate clients selling privately placed (trillions of yen) (billions of yen) investment trusts, but excluding that we booked net inflows of Y10
Slide 9: Investment Management
Investment Management Net revenue and income (loss) before income taxes Key points (billions of yen) ® Net revenue: Y26.5bn (-30% QoQ; 3.5x YoY) FY2022/23 FY23/24 QoQ YoY ® Income before income taxes: Y3.6bn (-78% QoQ) 1Q 2Q 3Q 4Q 1Q Business revenue, which is a stable revenue, increased 13% QoQ
Slide 10: Investment Management: Inflows lifted AuM to record high
Investment Management: Inflows lifted AuM to record high Assets under management (net)1 (trillions of yen) Investment advisory and international businesses, etc. AuM at record high of Y76.1trn Investment trust business 76.1 80.0 67.3 ® Investment trust business 65.6 64.8 64.7 Inflows into Japan sto
Slide 11: Wholesale
Wholesale Net revenue and income (loss) before income taxes2 Key points (billions of yen) Net revenue: Y190.9bn (+7% QoQ; -4% YoY) FY2022/23 FY23/24 ® QoQ YoY ® Income before income taxes: Y2.1bn (-92% YoY) 1Q 2Q 3Q 4Q 1Q ® Overall performance improved QoQ Net revenue 199.0 205.5 189.1 178.8 190.9 7
Slide 12: Wholesale: Global Markets
Wholesale: Global Markets Net revenue Key points (billions of yen) ® Net revenue: Y160.4bn (+7% QoQ; -9% YoY) Despite ongoing macro uncertainties, Fixed Income revenues 200.0 increased 11% driven by growth in the Credit business globally, improved performance in Rates in the Americas Equities re
Slide 13: Wholesale: Investment Banking
Wholesale: Investment Banking Sustainability-related Cross-border Business improving in each region, won multiple high-profile Net revenue mandates (billions of yen) 40.0 ® Global collaboration to execute sustainability deals Kenedix Office Pattern Energy Group Macquarie Group (AUS) Investment merge
Slide 14: Non-interest expenses
Non-interest expenses Full year Quarter Key points (billions of yen) (billions of yen)® Non-interest expenses: Y302.6bn 1,500 400 (+0.1% QoQ) Other 1,137.3 1,186.1 Yen depreciation continued but groupwide 310.1 302.2 302.6 expenses remained flat QoQ 287.3 286.5 Business development expenses 1,000 –
Slide 15: Robust financial position
Robust financial position Balance sheet related indicators and capital ratios RWA and CET 1 capital ratio3 Mar 2023 Jun 2023 (trillions of yen) RWA (Basel 3) (lhs) CET 1 capital ratio (Basel 3) (rhs) ï® Total assets Y47.8trn Y52.5trn 20.0 16.7% 16.9% 16.5% 20.0% 16.0% 16.3% ï® Shareholders’ equity Y
Slide 16: Financial Supplement
Financial Supplement
Slide 17: Consolidated balance sheet
Consolidated balance sheet Consolidated balance sheet (billions of yen) Mar 31, Jun 30, Increase Mar 31, Jun 30, Increase 2023 2023 (Decrease) 2023 2023 (Decrease) Assets Liabilities Total cash and cash deposits 4,521 4,760 238 Short-term borrowings 1,009 827 -181 Total payables and deposits 5,297 6
Slide 18: Value at risk
Value at risk1 ® Definition® From April 1, 2023, to June 30, 2023 (billions of yen) 95% confidence level Maximum: 6.3 1-day time horizon for outstanding portfolio Minimum: 4.6 Inter-product price fluctuations considered Average: 5.4 (billions of yen) FY2021/22 FY2022/23 FY2022/23 FY2023/24 Mar
Slide 19: Consolidated financial highlights
Consolidated financial highlights Full year Quarter (billions of yen) 200 8% 200 Net income (loss) 143.0 attributable to 150 5.1% 6% Nomura Holdings, Inc. (“NHI”) shareholders 92.8 3.8% 100 4% 100 3.1% 3.1% ROE (%) 66.9 2.9% 50 2% 1.2% 23.3 0.2% 16.8 1.7 7.4 0 0% 0 0% FY2022/23 FY2023/24 FY2021/22 F
Slide 20: Consolidated income
Consolidated income Full year Quarter (billions of yen) FY2022/23 FY2023/24 FY2021/22 FY2022/23 1Q 2Q 3Q 4Q 1Q Revenue Commissions 332.3 279.9 70.4 68.2 77.5 63.8 82.8 Fees from investment banking 149.6 113.2 27.3 24.2 33.8 28.0 31.1 Asset management and portfolio service fees 270.0 271.7 68.3 69.0
Slide 21: Main revenue items
Main revenue items Full year Quarter (billions of yen) FY2022/23 FY2023/24 FY2021/22 FY2022/23 1Q 2Q 3Q 4Q 1Q Stock brokerage commissions 236.4 190.8 48.4 48.5 52.6 41.3 55.2 Commissions Other brokerage commissions 18.0 17.9 4.8 4.7 4.3 4.0 4.0 Commissions for distribution of investment trusts 43.7
Slide 22: Income (loss) before income taxes by segment and region
Consolidated results: Income (loss) before income taxes by segment and region Adjustment of consolidated results and segment results: Income (loss) before income taxes Full year Quarter (billions of yen) FY2022/23 FY2023/24 FY2021/22 FY2022/23 1Q 2Q 3Q 4Q 1Q Retail 59.2 33.5 4.9 5.5 13.3 9.8 22.9 In
Slide 23: Segment “Other”
Segment “Other” Income (loss) before income taxes Full year Quarter (billions of yen) 90 73.4 60 59.5 30 15.8 21.9 15.7 2.1 0 -3. 19 2 3 4 5 -30 FY2022/23 FY2023/24 FY2021/22 FY2022/23 1Q 2Q 3Q 4Q 1Q Net gain (loss) related to economic -9.9 -4.8 -9.8 0.1 -1.5 6.3 3.4 hedging transactions Realized ga
Slide 24: Retail related data (1)
Retail related data (1) Full year Quarter (billions of yen) FY2022/23 FY2023/24 FY2021/22 FY2022/23 1Q 2Q 3Q 4Q 1Q QoQ YoY Commissions 138.5 112.5 26.0 26.2 31.2 29.1 41.3 41.9% 58.9% Of which, stock brokerage commission 67.4 50.9 11.8 12.2 13.4 13.4 19.1 42.3% 62.1% Of which, commissions for distri
Slide 25: Retail related data (2)
Retail related data (2) Retail client assets (trillions of yen) Other 140 133.3 122.2 122.1 122.2 119.4 117.7 117.5 Foreign investment 120 trusts 100 Bond investment trusts 80 Stock investment trusts 60 Domestic bonds 40 Foreign currency 20 bonds Equities 0 FY2021/22 FY2022/23 FY2022/23 FY2023/24 Ma
Slide 26: Retail related data (3)
Retail related data (3) Net inflows of cash and securities1 (billions of yen) Full year Quarter Corporates Individuals Corporates Individuals 1,200 1,200 900 900 600 600 300 300 0 0 -300 -300 -600 -600 FY2022/23 FY2023/24 FY2021/22 FY2022/23 1Q 2Q 3Q5 4Q 1Q Corporates2 -136 282 125 267 -137 27 108 I
Slide 27: Retail related data (4)
Retail related data (4) Number of accounts (thousands) FY2021/22 FY2022/23 FY2022/23 FY2023/24 Mar Mar Jun Sep Dec Mar Jun Accounts with balance 5,348 5,353 5,354 5,359 5,352 5,353 5,395 Equity holding accounts 2,955 2,963 2,958 2,957 2,950 2,963 2,943 NISA accounts opened (accumulated)1 1,589 1,632
Slide 28: Investment Management related data (1)
Investment Management related data (1) Full year Quarter FY2022/23 FY2023/24 (billions of yen) FY2021/22 FY2022/23 QoQ YoY 1Q 2Q 3Q 4Q 1Q Business revenue 119.9 120.7 30.7 29.9 31.4 28.7 32.5 13.2% 6.1% Investment gain/loss 28.1 7.9 -23.1 -3.7 25.6 9.1 -6.0 — Net revenue 148.0 128.6 7.6 26.2 57.0 37
Slide 29: Investment Management related data (2)
Investment Management related data (2) Asset inflows/outflows by business1, 2 Full year Quarter FY2022/23 FY2023/24 (billions of yen) FY2021/22 FY2022/23 1Q 2Q 3Q 4Q 1Q Investment trusts business 1,236 156 478 137 -100 -358 649 of which ETFs 683 -250 323 -5 -347 -221 42 Investment advisory and 830 -
Slide 30: Wholesale related data
Wholesale related data Full year Quarter (billions of yen) FY2022/23 FY2023/24 FY2021/22 FY2022/23 QoQ YoY 1Q 2Q 3Q 4Q 1Q Net revenue 703.1 772.4 199.0 205.5 189.1 178.8 190.9 6.7% -4.1% Non-interest expenses 628.6 743.0 173.7 185.3 190.9 193.1 188.7 -2.2% 8.7% Income (loss) before income taxes 74.5
Slide 31: Number of employees
Number of employees FY2021/22 FY2022/23 FY2022/23 FY2023/24 Mar Mar Jun Sep Dec Mar Jun Japan 15,213 15,131 15,503 15,384 15,282 15,131 15,382 Europe 2,820 2,937 2,811 2,869 2,908 2,937 2,971 Americas 2,257 2,387 2,252 2,358 2,392 2,387 2,426 Asia and Oceania1 6,295 6,320 6,407 6,520 6,634 6,320 6,4
Slide 32: Disclaimer
Disclaimer This document is produced by Nomura Holdings, Inc. (“Nomura”). Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any security, commodity or other instrument, including securities issued by Nomura or any affiliate thereof. Offers to sell, s
Slide 33: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.co ssss